Carvana (NYSE:CVNA) Shares Up 7.8% – Here’s What Happened

Carvana Co. (NYSE:CVNA) traded up 7.8% during trading on Tuesday . The company traded as high as $69.53 and last traded at $70.0820. Approximately 5,102,436 shares were traded during mid-day trading, a decline of 67% from the average session volume of 15,369,698 shares. The stock had previously closed at $64.99.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. UBS Group reissued a “buy” rating and issued a $104.00 price target (up from $97.00) on shares of Carvana in a report on Thursday, April 30th. Citizens Jmp raised their price objective on shares of Carvana from $92.00 to $103.00 and gave the stock a “market outperform” rating in a report on Friday, May 1st. Barclays set a $93.00 target price on shares of Carvana and gave the company an “overweight” rating in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $107.40 price target on shares of Carvana in a research report on Thursday, April 30th. Finally, BNP Paribas Exane raised their price target on shares of Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $92.92.

Carvana Stock Performance

The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The stock has a fifty day simple moving average of $68.21 and a 200-day simple moving average of $72.55. The company has a market capitalization of $77.43 billion, a P/E ratio of 42.94, a PEG ratio of 11.88 and a beta of 3.46.

Carvana (NYSE:CVNA) last posted its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The business had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Equities analysts forecast that Carvana Co. will post 1.58 EPS for the current year.

Insider Activity at Carvana

In related news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.53, for a total transaction of $342,650.00. Following the sale, the vice president directly owned 144,934 shares in the company, valued at $9,932,327.02. This represents a 3.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the sale, the director directly owned 186,470 shares of the company’s stock, valued at $12,648,260.10. This represents a 7.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 396,962 shares of company stock valued at $28,525,088. Insiders own 15.19% of the company’s stock.

Institutional Trading of Carvana

Hedge funds and other institutional investors have recently made changes to their positions in the business. Sands Capital Management LLC grew its stake in shares of Carvana by 44.4% during the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock worth $1,030,798,000 after acquiring an additional 751,019 shares in the last quarter. Capricorn Fund Managers Ltd acquired a new position in Carvana during the first quarter worth $29,866,000. Gavilan Investment Partners LLC boosted its holdings in Carvana by 24.6% during the fourth quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company’s stock worth $36,294,000 after purchasing an additional 17,000 shares during the last quarter. Goodnow Investment Group LLC grew its position in Carvana by 9.0% in the fourth quarter. Goodnow Investment Group LLC now owns 710,091 shares of the company’s stock valued at $299,673,000 after purchasing an additional 58,828 shares in the last quarter. Finally, Hsbc Holdings PLC grew its position in Carvana by 239.6% in the fourth quarter. Hsbc Holdings PLC now owns 221,727 shares of the company’s stock valued at $93,748,000 after purchasing an additional 156,430 shares in the last quarter. 56.71% of the stock is currently owned by institutional investors and hedge funds.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.